Vesteda brings forward refinancing and closes new €600 mln credit facility
Vesteda today closed a new €600 million senior unsecured revolving credit facility with an initial term of five years. The facility will be used to finance acquisitions as well as for the early refinancing of credit lines with original term running to 2016 and 2018, given the current favorable market conditions.
With this new facility, Vesteda has further optimised and improved the flexibility of its capital structure by expanding its group of banks, extending the average term of its debt capital and once again reducing its future interest charges.
In addition to this refinancing, Vesteda also recently terminated its CMBS programme through the early redemption of the final €300 million in CMBS notes. This means that Vesteda has completed the transition to a corporate unsecured financing structure ahead of schedule.
“We are very pleased to have further implemented our financing objectives for a stronger and more flexible capital structure with this transaction. The expansion of the banking group, the oversubscription and the smooth refinancing process underline Vesteda’s strategic direction, solid credit profile and its financial strength,” says Vesteda CFO Hélène Pragt.
The credit facility is provided by ABN AMRO, BNP Paribas, Deutsche Bank, ING Bank and Rabobank. Rabobank is also acting as coordinator and facility agent. Kempen & Co acted as financial advisor in this transaction.
Vesteda is an investor with a clear focus on the Dutch residential real estate market. Vesteda invests funds for institutional investors, including pension funds and insurers. Vesteda has total capital of approx. €3.6 billion invested in real estate. The company’s rental portfolio stands at a total of around 23,000 units. Vesteda’s key investment regions are the Randstad urban conurbation and the Noord Brabant province. In 2014, Vesteda generated a net result of €136 million, with more than 200 employees.